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PoliticsJapan

Japan pitches free trade zone linking it to Africa, India while extending $5.5 billion loan

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Mari Yamaguchi
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Ayaka McGill
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August 20, 2025, 12:28 PM ET
Japan's Prime Minister Shigeru Ishiba wags his finger with a serious face at the camera.
“Japan believes in Africa's future," Japan's Prime Minister Shigeru Ishiba said.Tomohiro Ohsumi/Getty Images
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Japan’s Prime Minister Shigeru Ishiba on Wednesday proposed an economic zone connecting the Indian Ocean to Africa as the country seeks to play a greater role in the African continent while America’s presence there decreases and China’s influence rapidly grows.

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Ishiba, kicking off the Tokyo International Conference on African Development (TICAD), pledged to strengthen business and investment in the region and promote free trade by connecting the Indian Ocean region to the African continent.

“Japan believes in Africa’s future,” Ishiba said. “Japan backs the concept of African Continental Free Trade Area,” which aims to bolster the region’s competitiveness.

This year’s summit comes as U.S. President Donald Trump’s tariff war and drastic cuts in foreign-aid programs have negatively affected development projects in Africa. Meanwhile, China has been expanding its foothold in the area since 2000 through infrastructure building and loan projects.

The three-day summit in Yokohama, near Tokyo, is focusing on the economy as well as peace and stability, health, climate change and education. Leaders and representatives from about 50 countries from the African continent, as well as officials from international organizations, are attending.

Japan launched TICAD in 1993. It was last held in Tunisia in 2022.

“Africa must have a stronger voice in shaping the decisions that affect its future,” United Nation’s Secretary-General António Guterres, said at the event, adding that African nations are underrepresented in the international community and its decision-making process.

Under the Indian Ocean Africa economic zone initiative, Japan aims to bring investment into Africa from Japanese companies operating in India and the Middle East.

Ishiba said Japan will extend loans of up to $5.5 billion in coordination with African Development Bank to promote Africa’s sustainable development to address their debt problems.

He also said Japan aims to provide support to train 30,000 artificial intelligence experts over the next three years to promote digitalization and create jobs.

Guterres said “unjust and unfair international financial architecture” must enhance African representation and endorse a strong African voice in the decision-making process, adding that building AI capacity in developing countries in Africa would help ease digital divide in the region.

Those present at the summit are expected to adopt a “Yokohama declaration” Friday and Ishiba will announce the outcome at a news conference.

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